Qualified advisers answering your
Financial Questions
call 0800 092 1245

Mortgage applications rise despite mortgage lenders slow reaction to rate cut

The initial indications from the mortgage market are that there has been an increase in mortgage applications since the 1.5% reduction in UK base rates. This is a very interesting development because the banks have yet to pass on the full benefit of recent base rate reductions to the UK consumer. Initially they had questioned the quality of mortgages in the short to medium term bearing in mind the UK property market but this seems to be an argument which is wearing thin.

The mortgage lenders in the UK have been crying out for increased turnover and now that appears to be on the horizon we need to see some movement in bottom line mortgage rates as soon as possible. However, many new mortgage applicants will be surprised to see a substantial increase in the deposits required for the better rates and so may well suffer on less well-publicised higher rates because of their deposit situation.

Once the whole sector is singing from the same hymn book we should start to see some movement in the UK property sector although this will not necessarily see prices increase or even stabilise in the short term.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details